The more you save for retirement \u2014 especially while you\u2019re younger \u2014 the faster you\u2019ll become \u201cwork optional\u201d and the more comfortable your retirement will be.<\/p>\n
Of course, some workers save more aggressively<\/a> than others. How does your 401(k) contribution rate<\/a> stack up against the average American\u2019s?<\/p>\n According to a third quarter 2025 report by Fidelity<\/a>, the average employee contributes 9.5% of their salary toward their 401(k) account<\/a>. Employers add an extra 4.7% matching contribution on average, for a combined contribution rate of 14.2%.<\/p>\n That\u2019s near a record high percentage of 14.3%, seen in the first quarter of 2025. But is it enough?<\/p>\n Learn More: I\u2019m a Financial Expert \u2014 This Is the No. 1 Mistake Americans Make With Their 401(k)<\/a><\/p>\n Consider This: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home<\/a><\/p>\n \u201cWorkers should aim to save approximately 15% of their income to their 401(k) to achieve a secure retirement,\u201d recommends Rick Reed, retirement account expert with HR firm Segal<\/a>. That falls in line with Fidelity\u2019s own recommendation of 15%.<\/p>\n Bear in mind that that recommended rate of 15% includes both the worker\u2019s and the employer\u2019s contributions. So, the average American isn\u2019t far off the recommended rate, by contributing 14.2%.<\/p>\n Granted, the Fidelity study only includes workers who have access to a 401(k) workplace plan. It therefore skews toward higher earners, rather than hourly or contract workers without access to a workplace retirement plan.<\/p>\n Don\u2019t get discouraged if you can\u2019t contribute anywhere close to 15% to your 401(k) account. Start by saving just the amount needed<\/a> to secure the full matching contribution from your employer. It\u2019s part of your compensation package after all!<\/p>\n Even small amounts compound over time, notes financial advisor Linda R. Jensen of Heart Financial Group<\/a>.<\/p>\n \u201cTime in the market and consistency matter more than finding the perfect moment,\u201d Jensen said.<\/p>\n